Which assumed inventory cost flow method:

1. usually parallels the actual physical flow of merchandise?
2. divides cost of goods available for sale by total units available for sale to determine a unit cost?
3. assumes that the latest units purchased are the first to be sold?

Finch Electronics produces video games in three market categories: commercial, home, and miniature. Finch has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

     
Additional data for each of the product lines follow:     

    
Required

1. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

2. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

Thornton Electronics produces video games in three market categories: commercial, home, and miniature. Thornton has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

     
Additional data for each of the product lines follow:     

    
Required

1. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

2. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

Category Total Pooled Cost Types of Costs Cost Driver Unit $ 360,000

Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours

Batch 194,400

Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling Number of production orders

Product 105,600

Research and development Time spent by research department

Facility 300,000

Rent, general utilities, maintenance, facility depreciation, admin. salaries Square footage

Additional data for each of the product lines follow:

Commercial Home Miniature Total

Direct materials cost $ 25.00 /unit $ 15.00 /unit $ 12.00 /unit —

Direct labor cost $ 10.00 /hour $ 8.00 /hour $ 9.00 /hour —

Number of labor hours 6,000 12,000 2,000 20,000

Number of machine hours 10,000 45,000 25,000 80,000

Number of production orders 200 2,000 800 3,000

Research and development time 10 % 20 % 70 % 100 %

Number of units 15,000 45,000 14,000 74,000

Square footage 20,000 50,000 30,000 100,000

  
Required

Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

The short-run supply curve for a perfectly competitive firm is its

A. marginal cost curve above the average variable cost curve.

B. marginal cost curve above the average fixed cost curve.

C. average variable cost curve above the marginal cost curve.

D. average variable cost curve above the average total cost curve.

E. average variable cost curve above the average fixed cost curve.

Environmentalists concerned about the impact of high-frequency radio transmissions on birds found that there was no evidence of a higher mortality rate among hatchlings in nests near cell towers. They based this conclusion on a test using alpha=0.05. Would they have made the same decision at alpha=0.10? How about alpha=0.01? Explain. (Hint: It would help if you write the null and alternative hypotheses).

Please show all work. Typed work only. no handwritten.

1.Describe the two different ways in which an ADI may be exposed to interest rate risk.  What would it do – in respect of the two different aspects of interest rate risk – if it thought interest rates were going to increase in the near future and wanted to take advantage of this prediction?  Explain how these actions will be of benefit if interest rates do increase as predicted?

2.Describe how a bank could use derivatives to hedge an exposure to decreasing interest rates.